Smart Debt : Borrow Wisely, Live Rich

by Rich, Jason R.

• ISBN13: 9781932531749
• ISBN10: 1932531742
• Edition: 1st
• Format: Paperback
• Copyright: 2006-10-18
• Publisher: Entrepreneur Press

Summary

How the Rich Get Richer If you're like most Americans, debt is a way of life. So what separates the rich from the poor? The wealthy use debt to improve their financial situation-we call that "Smart Debt"-and the poor use debt for instant gratification and just keep getting deeper in the hole. Smart Debt is getting the best interest rate, budgeting the right amount of your income to pay off debt, and borrowing only what you can afford. Smart Debt puts your money to work for you. In this book, you'll discover money-saving strategies for every type of debt: Mortgages Education loans Auto loans Business loans Credit cards And more We'll transform the way you look at debt and let you in on the best-kept secret of America's wealthy: how to borrow money to make money.

Author Biography

Faye Kathryn Doria has 25 years of experience as a certified financial planner.

Cheryl Kimball is a writer with plenty of debt experience, including car loans, mortgages, and credit cards. They cowrote The Everything Get Out of Debt Book.

Table of Contents

Introduction	ix
1. Understanding Your Current Financial Situation	1	(17)
What Is Debt?	2	(2)
Types of Debt	4	(1)
"Smart Debt" vs. Bad Debt	5	(2)
Determining Your Current Financial Situation	7	(9)
Your Financial Goals	16	(2)
2. Your Current Credit Situation	18	(23)
What Is a Credit Score?	19	(2)
How Your Credit Score Is Calculated	21	(1)
Credit Score and FICO Score: What's the Difference?	22	(4)
You Have Your Credit Report—Now What?	26	(7)
Your Actions Impact Your Creditworthiness	33	(7)
Applying Smart-Debt Principles	40	(1)
3. Smart Debt Principles and Mortgages	41	(28)
Finding the Right Broker or Lender	42	(4)
Choose the Right Mortgage Product to Meet Your Needs	46	(4)
Common Types of Mortgages	50	(12)
Refinancing 101	62	(7)
4. Smart Debt Principles and Second Mortgages, Home Equity Loans, and Home Equity Lines of Credit	69	(11)
Methods of Cashing out on the Equity in Your Home	70	(2)
Decisions in Choosing a Loan or a Line of Credit	72	(2)
Second Mortgage: Is It Right for You?	74	(1)
Home Equity Loans: The Pros and Cons	75	(1)
A Home Equity Line of Credit: Cash When You Need It	76	(2)
Always Be Responsible with Your Spending	78	(2)
5. Applying Smart-Debt Principles to Auto Financing and Leases	80	(13)
Applying Smart-Debt Principles to Buying or Leasing	81	(3)
Same Car, Same Dealer, Different Price—Go Figure!?	84	(1)
Financing Options	85	(4)
Completing a Loan Application	89	(1)
Leasing a Vehicle	90	(1)
Other Car Considerations	91	(2)
6. Credit Card Smart Debt Strategies	93	(24)
What to Consider Before Using a Credit Card	94	(1)
What Are Credit Cards?	95	(4)
Using Credit Cards According to Smart-Debt Principles	99	(6)
Managing Your Credit Card Accounts	105	(4)
Two More Strategies for Managing Your Credit Cards	109	(3)
What to Do if Your Credit Cards Get Lost or Stolen	112	(2)
Protecting Yourself from Identity Theft	114	(3)
7. Smart Debt 101 and Your Student Loans	117	(10)
Repaying Student Loans	118	(1)
Taking on New Student Loans	119	(3)
An Introduction to Student Loans	122	(3)
Advice for the Student	125	(2)
8. Managing Your Money Using Smart-Debt Principles	127	(18)
Create a Budget and Stick to It	129	(6)
Reduce Your Banking Fees	135	(1)
Types of Bank Accounts	136	(5)
Payday Lending Is Not Smart Debt!	141	(1)
Cut Everyday Expenses	142	(2)
Develop an Emergency Fund	144	(1)
9. Getting the Help You Need to Fix Your Credit and Debt Problems	145	(12)
Money Management Problems? A CPA or CFP Can Probably Help!	147	(1)
Strategies for Finding a Qualified Financial Planner	148	(1)
Credit Counselors Are Available to Help You	149	(4)
Beware of Scams	153	(1)
Debt Consolidation	154	(1)
Seek Out the Help You Need	155	(2)
10. Improving Your Income and Planning for Your Financial Future	157	(14)
Finding a Job That's Right for You	159	(1)
Defining Your Skills	160	(2)
Your Previous Work Experience	162	(1)
Defining Your Interests	162	(1)
Always Look for Career Advancement Opportunities	163	(1)
Make Sure You're Earning What You're Worth	164	(1)
Remember: Benefits Are Worth Money Too	165	(1)
Where to Find the Best Job Opportunities	165	(3)
Improve Your Skills	168	(1)
The Smart-Debt Principles Are a Way of Life	168	(3)
Glossary	171	(12)
Index	183